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Innovation height, spillovers and TFP growth at the firm level: Evidence from French manufacturing

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  • DUGUET Emmanuel

    (EPEE - University of Evry)

Abstract

We examine the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the firm level. The first part of our analysis is dedicated to the determinants of innovation and reveals two different innovation regimes. On the one hand, radical innovations rely strongly on firm-level spillovers, including property rights, and formal internal research while, on the other hand, incremental innovations rely mostly on the adoption of equipment goods accompanied by informal research. We find that radical innovations are the only significant contributors to TFP growth so that innovation height matters. We also find evidence that TFP growth is better represented by an upward shift of the production function than by a continuous innovation measure. Overall, the growth gains that we find are comparable to the ones of the previous studies.

Suggested Citation

  • DUGUET Emmanuel, 2004. "Innovation height, spillovers and TFP growth at the firm level: Evidence from French manufacturing," Development and Comp Systems 0411017, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0411017
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    References listed on IDEAS

    as
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    Cited by:

    1. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, Elsevier.
    2. Caterina Santi & Pietro Santoleri, 2017. "Exploring the link between innovation and growth in Chilean firms," Small Business Economics, Springer, vol. 49(2), pages 445-467, August.
    3. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, Elsevier.
    4. DUGUET Emmanuel, 2004. "Are R&D subsidies a substitute or a complement to privately funded R&D? Evidence from France using propensity score methods for non- experimental data," Public Economics 0411007, University Library of Munich, Germany.
    5. Luís F. Tironi & Bruno de O. Cruz, 2008. "Inovação Incremental ou Radical: Há Motivos para Diferenciar? Uma Abordagem com Dados da PINTEC," Discussion Papers 1360, Instituto de Pesquisa Econômica Aplicada - IPEA.
    6. Raymond, Wladimir & Mairesse, Jacques & Mohnen, Pierre & Palm, Franz, 2015. "Dynamic models of R & D, innovation and productivity: Panel data evidence for Dutch and French manufacturing," European Economic Review, Elsevier, vol. 78(C), pages 285-306.
    7. Cristiano Antonelli & Giuseppe Scellato, 2013. "Complexity and technological change: knowledge interactions and firm level total factor productivity," Journal of Evolutionary Economics, Springer, vol. 23(1), pages 77-96, January.
    8. Stéphane Lhuillery & Julio Raffo & Intan Hamdan-Livramento, 2016. "Measuring creativity: Learning from innovation measurement," WIPO Economic Research Working Papers 31, World Intellectual Property Organization - Economics and Statistics Division.
    9. Sdiri, Hanen & Mohamed, Ayadi, 2011. "La décision d'innovation: cas des entreprises Tunisiennes de services
      [Explaining the decisions to innovate: the case of Tunisian service firms]
      ," MPRA Paper 23084, University Library of Munich, Germany.
    10. Bronwyn H. Hall, 2011. "Innovation and Productivity," NBER Working Papers 17178, National Bureau of Economic Research, Inc.
    11. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
    12. Enrico Santarelli & Francesca Lotti, 2007. "The Relationship among innovative Output, Productivity, and Profitability. A test comparing USPTO and EPO data," Jena Economic Research Papers 2007-020, Friedrich-Schiller-University Jena.
    13. BENEKI, Christina & GIANNIAS, Dimitrios & MOUSTAKAS, George, 2012. "INNOVATION AND ECONOMIC PERFORMANCE: the case of Greek SMEs," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(1), pages 43-54.
    14. Fassio, Claudio, 2015. "Export-Led Innovation Among European Firms. Demand and Technological Learning Effects," SEP Working Papers 2015/2, LUISS School of European Political Economy.
    15. Sdiri, Hanen & Ayadi, Mohamed, 2011. "Innovation decision of Tunisian service firms: an empirical analysis," MPRA Paper 30898, University Library of Munich, Germany.
    16. Emmanuel Duguet & Megan MacGarvie, 2005. "How well do patent citations measure flows of technology? Evidence from French innovation surveys," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(5), pages 375-393.
    17. Cristiano, Antonelli & Scellato, Giuseppe, 2007. "Complexity and Innovation: Social Interactions and Firm Level Total Factor Productivity," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200709, University of Turin.
    18. Pierre Mohnen & Pierre Therrien, 2005. "Comparing the Innovation Performance in Canadian, French and German Manufacturing Enterprises," CIRANO Working Papers 2005s-33, CIRANO.
    19. Correa, Paulo & Andres, Luis & Borja-Vega, Christian, 2013. "The impact of government support on firm R&D investments : a meta-analysis," Policy Research Working Paper Series 6532, The World Bank.

    More about this item

    Keywords

    growth; innovation; total factor productivity; Solow residual; spillovers;

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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